Volkswagen Leads Corporate Bond Sales with First Deal of 2013

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5 Years : From Mar 2013 to Mar 2018

By Ben Edwards

Volkswagen AG (VOW.XE) is seeking to sell bonds Monday, the first non-financial company to issue debt in the European primary bond market this year.

Banks were also busy following last week's trickle of financial deals, with Italian lender UniCredit SpA (UCG.MI) offering a 1 billion euro ($1.32 billion) covered bond. Last year, investors had to wait until August for the first covered bond from an Italian bank, also issued by UniCredit.

Akin to that deal in August, UniCredit's borrowing costs are likely to be almost a full percentage point lower than where Italian government bonds of a similar maturity are trading.

Deutsche Bank AG (DB) sold a EUR1.75 billion 10-year bond with a coupon of 2.375%, equivalent to 78 basis points over midswaps.

Insurance and financial company MetLife Inc. (MET) is planning a two-part bond denominated in euros and sterling, both maturing in 10 years. Suggested pricing on the euro deal was in the area of 80 basis points over midswaps, and 110 basis points over gilts for the sterling tranche.

Dutch public-sector agency Bank Nederlandse Gemeenten, or BNG, is planning a seven-year euro bond. Suggested pricing was in the high 20 basis-point area over midswaps.

COMING UP:

German lender Commerzbank AG (CBK.XE) is planning to meet investors ahead of its debut covered bond backed by loans made to small and medium-sized companies, or SMEs. The meetings will commence Jan. 14.